Chapter 3, Building an e-Business: Design,
Development and Management
Outline
3.1 Introduction 3.2 Getting Started
3.2.1 Generating Business Ideas
3.2.2 Growth of e-Business: Evaluating Risk 3.2.3 Finding Funding and Going Public 3.3 Putting Your Plan Into Action
3.3.1 Choosing a Domain Name
3.3.2 Supply-Chain Management: Vendors, Distributors and Shipment Providers
3.3.3 Web-Site Hosting 3.3.4 Web Design
3.3.5 Enhancing the User Experience 3.3.6 Protecting Your e-Business
Outline
3.4 e-Business Solutions
3.4.1 End-To-End e-Business Solutions 3.4.2 Other e-Business Solutions
3.4.3 Maintaining and Monitoring Your Web Site 3.4.4 e-Commerce Consulting
3.1 Introduction
•
Turnkey solution
– A pre-packaged e-business
•
E-business templates
– Outline the basic structure, but allow the design to be determined by the owner
•
Project outsourcing
– Available to businesses with substantial funding, alleviates the need for businesses to complete projects in-house
•
Front-end system
– Portion of an e-business that is visible to consumers
•
Back-end system
3.2 Getting Started
• Building, Managing and Maintaining
– Advertising – Marketing
– Customer relationship management – Content management
– Accepting online payments
3.2.1 Generating Business Ideas
• Products and services
– Discover what exists
– Decide how to improve it
• Develop a business plan
– Enables you to envision your e-business on paper for evaluation purposes
3.2.1 Business Plan Layout
• Business plan layout
– Introduce your readers to the layout, what you will discuss and when you will discuss it
– Provide an overview of the business premise including the primary issues
– Headings and sub-headings should categorize the content – Focus on what makes the e-business unique
• Business plan services and software
– www.synrgistic.com/busplan/busplan.htm
– Mindspring Biz
3.2.1 Business Plan Layout
• Primary Purpose
– Define the purposes of your business – What do you intend to sell
– What services will you provide
• Strategy
– Describe how your product or service fits in the market – How is it different from existing products and services – How will it be profitable
• Business model
3.2.1 Business Plan Layout
• Support
– Provide evidence that supports the idea of your business – How will you justify these as support to the idea
– Have you conducted research – Who are your customers
– Who is on your management team and what are their credentials
– How will you generate revenue – What are your expenses
• Process
– List the steps necessary to build your e-business – Does more research need to be conducted
3.2.2 Growth of e-Business:
Evaluating Risk
• Many Internet companies have experienced rapid
growth
• Many others have struggled to get off the ground,
find funding and make a profit
• Technological advancements usually lead to
growth in industry
• The Internet has produced new industries and
altered and enhanced existing industries
3.2.3 Finding Funding and Going
Public
• Building an e-business can be expensive and risky
• Competition is intense
• Determining a market niche and reaching a target
audience often require significant financial
backing
•
Internet incubator
– A company that specializes in the development of Internet businesses
– Often will serve as the financiers, as well as work with the development team
3.2.3 Finding Funding and Going
Public
• Internet incubators
– Camp Six
– eCorporation
– Idealab
– eHatchery
•
Venture capitalists
– Individuals or groups that generate the financial support of a growing enterprise, usually in exchange for ownership in the company
• Angel investors
– Wealthy investors with business experience
• Many e-businesses look to make an
Initial Public Offering
(IPO)
3.2.3 Finding Funding and Going
Public
3.3 Putting Your Plan Into Action
• After generating ideas, building a business plan
and finding funding, prepare to:
– Manage distribution– Manage shipping
– Enhance the user experience through Web design – Prepare for new technologies
– Purchase supporting hardware and software – Accept online payment
3.3.1 Choosing a Domain Name
•
Domain name
– The name used in the URL for a Web site
– Choose a concise name that people will be able to recognize and type easily
– Consider how a domain name will be interpreted in many different languages and cultures
•
Fully qualified host name
– The host name, the domain name and the top-level domain (TLD)
– Most Web servers use www as the host name
– A domain name is often the name of the company that owns a site or a word or phrase that otherwise describes the site – The TLD usually describes the type of organization that
3.3.1 Choosing a Domain Name
• Available domain names with the dot-com
(
.com
)
extension are becoming rare
• ICANN is considering the possibility of
introducing new suffixes, such as
.movie
,
.inc
,
.info
and
.web
• Registering a domain name
– Network Solutions, Register.com, Domainit.com
• Cost to register a domain name depends on
extension
3.3.2 Supply-Chain Management
•
Fulfillment
– Warehouse storage, shipping, inventory management and return procedures
•
Manufacturer
– The direct producer of the product
•
Distributor
– The supplier who acts as a middleman to manufacturers and vendors, often reducing the price of an item by buying in bulk
3.3.2 Supply-Chain Management
• Increased efficiency
– Web merchant can serve customers better by knowing the status of each order
– Web-based fulfillment mechanisms will demonstrate if the product is available, if it has left the warehouse or if it has been delivered and who signed for it
– Wireless Internet access allows fulfillment status to be checked from any location at any time
• Supply-chain management services and software
– ChangePoint, GoCargo.com, Evolve, Atlas Commerce,3.3.2 Supply-Chain Management
3.3.3 Web-Site Hosting
•
Web host
– Provides products, services and support for companies, organizations and individuals to help them create and maintain Web sites
– Offers customers space on a Web server where they can build a Web site
•
Dedicated server
– Assigned one specifc purpose, ensuring that the function that the server was intended to manage is not interrupted by other responsibilities, ofering consistent download times
•
Colocation
3.3.3 Web-Site Hosting
• Web-hosting services
– Loudcloud
– Hostopia
– DedicatedHosting.com
– HostPro
– Global Crossing
– Exodus
– Digital Island
– Digex
3.3.3 Web-Site Hosting
• Turnkey solutions
– Freemerchant
– Yahoo! Store
– BigStep.com – Tripod.com
– Commerce One
– Virtual Spin
– AbleCommerce’s AuctionBuilder
– Bidland.com
– WebSiteForFree.com
3.3.4 Web Design
• Web site should be easy to navigate
• Content should be the foundation of the site and
updated regularly
• Design consistency
– Uniformity among the sections and pages
• Examples of well-designed sites:
– Cooking.com
– Apple
– Crayola
– Amazon.com
3.3.4 Web Design
• Strong branding
• Easily located contact information
• Consistent appearance of logos and color scheme
• Easily located products and prices
•
Low-switching costs
3.3.4 Web Design
WebSiteForFREE.com’s site design. (Courtesy of
3.3.4 Web Design
3.3.5 Enhancing the User
Experience
• Adding a search engine
– Freefind•
Intelligent agents
– Software programs that communicate with end users and recognize the users’ preferences (Amazon.com)
• Enhancing visual experience
– ZOOM Server software– ImagePump
• Community-building tools
– MyEvents.com
3.3.5 Enhancing the User
Experience
3.3.5 Enhancing the User
Experience
3.3.5 Enhancing the User
Experience
3.3.5 Enhancing the User
Experience
3.3.6 Protecting Your e-Business
• Timely shipping and effective personalization
• Protection from mistakes and misunderstandings
–
Egghead.com
• Privacy policy
– Secure Assure
• Disclaimers should be easy to locate and
information should be presented in a clear and
concise manner
– Offer protection against:
• Small spelling or editing errors
3.3.6 Protecting Your e-Business
3.3.7 Streaming Media
• While multimedia such as streaming video and
audio can enhance content, not all users have the
capabilities to download this kind of information
• Provide consumers with simpler Web pages
3.3.8 Preparing for New
Technologies
• Keep up with new technology
• Plan for new technologies during initial building
stages
– Cell phone – Pager
– Personal Digital Assistant (PDA)
3.4 e-Business Solutions
• Enable good managers and business owners to
build, manage and maintain an e-business
• Web-site building services
• e-Consulting
3.4.1 End-to-End e-Business
Solutions
•
End-to-end solution provider
– Offers services to build Web sites from conception to implementation
• Design, development and deployment services
• Payment capabilities
• Web-site monitoring services
• Back-end adaptation
• Fulfillment
3.4.1 End-to-End e-Business
Solutions
• End-to-end solution providers
– Webvision– Microsoft’s bCentral
– ROIDirect’s Ecommerce
– Dell E Works
3.4.2 Other e-Business Solutions
• Exist for e-business development, operation and
management
• Solution providers
– Openair.com
– Intacct
– BAport Accounting
– Netledger
– BizTone Financials
– Allaire Spectra
– Mediasurface – InfoOffice
3.4.3 Maintaining and Monitoring
Your Web Site
•
Balanced Scorecard
– A method used to measure the success of a business by its performance in customer satisfaction, integration capabilities and potential for growth
– An e-business must also consider its use of current
technologies for management and production purposes
• Monitoring software and services
3.4.3 Maintaining and Monitoring
Your Web Site
3.4.4 e-Commerce Consulting
• Guide developing e-businesses
• Consulting services
– Accenture (formerly Andersen Consulting) – iPlanet
– SAP
– Sun Microsystems
– Kintana
– Xpedior
– Ernst & Young
– Deloitte & Touche
– eRunway
